Sales in China's used car market have surged for several years and almost hit 17 million last year, up about 8% from the prior year. The demand for the pre-owned cars market is on a rise as buyers are switching towards well-built reliable vehicles owing to economic changes and implementation of policies favouring expansion in the sector. This underscores the growing opportunities in this segment, with industry analysts projecting a potential 10% CAGR till 2025 for heparin market.
Moreover, the used car market is seeing strong demand not only from a rising middle-class but because second-hand cars are increasingly becoming acceptable as reliable substitutes for new vehicles. In the case of luxury brands like BMW and Mercedes-Benz, their resale rate has soared to nearly 15% in some major cities such as Beijing and Shanghai. These include better visibility of vehicle history records and stronger regulations which have increased consumer confidence.
Major players such as Guazi and Uxin have so far leveraged on this trend, creating online marketplaces to match buyers with the sellers more effectively. Guazi grew its transactions by 35% in a year-on-year comparison for 2022, which indicates that online car trading services are still highly wanted. The implementation of the market in a digital product allowed for seamless purchase through it, resulting in 20% less time taken per transaction than with regular dealers.
In China, pricing in the used car market is as all over the map -- influenced by multiple factors including how old a vehicle is and how many miles it's racked up or even who built it. This is a category that has broad consumer appeal in China where the average used car sells for between 50,000 and 150,00 RMB. Aging vehicles here in this market, cars typically ranging from three-to-five years old make the buyer:no-buyer weighing scale just that much easier.
Economic factors also help shape the market. China has a history with depreciation rates that have been among the fastest in the world, which sometimes can see cars shed 15-20 percent of their value just by driving off dealer lots. It leads to steep loss of value, making for a buyer's heaven -- with late-model vehicles trading hands at deep savings.
There is also an increase in cross-regional transaction volume, where loosening of inter-provincial transfer restrictions has been a key factor. That's lift the sales on a larger pool of available vehicles. Almost 30% of all used car purchases back in 2023 were made across state lines, a significant increase over the roughly one fifth scored during to visits two years before.
They are facing woes in quality assurance and post-sales service. Nonetheless, as additional platforms expand the availability of extended warranties and detailed inspection reports, perpetual confidence in the China used car market is gradually increasing. Therefore, so the car beauty pay., this sector will be China's automobile industry in your journey toward!